Experian: Cord-Cutting on the Rise, Especially Among Netflix and Hulu Fans

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As if we didn't already know that cable companies have something to fear from the rise of the content-streaming services: Netflix, Hulu, Amazon Prime Instant Video, and the ilk. A new report from Experian Marking Services is throwing a bit more fuel onto the fire by indicating that the number of high-speed Internet customers who either never have subscribed or have stopped subscribing to cable or satellite TV is on the rise.

Back in 2010, Experian's survey indicated that approximately 4.5 percent of all U.S. households could be considered "cord-cutters." That figure jumped up to 6.5 percent in 2013, based on a survey of 24,000 U.S. adults. That's not a very eye-opening increase, percentage-wise, but it's something. And there's another fun stat to pair with it: If a household had a working Netflix or Hulu account, 12.7 percent of these households cut the cord in 2010. In 2013? 18.1 percent.

In other words, Experian's report indicates that nearly one-fifth of Americans who watch Netflix or Hulu don't subscribe to a cable or satellite TV service.

Being able to stream shows on-demand to one's TV appears to be a pretty significant motivator for entertainment-watchers to cut the cord. This group of people were three times as likely to drop cable or satellite TV  nearly six times as likely if watching streaming video was primary way they felt as if they used their televisions.

While Experian's report found that 42 percent of U.S. adults said they watched video content on their smartphones weekly, watching streaming video on these (or their tablets) wasn't quite as large a motivator compared to the aforementioned television statistic, but it was still something. Those who watch streaming video on a tablet or smartphone were 1.5 times as likely to not have cable or satellite TV; 2.4 times as likely if they said that primarily used their devices to stream video.

Interestingly, those watching streaming video on a gaming console were twice as likely to not have cable or satellite TV. Beyond that, there were actually a subset of people who indicated that their primary use of their gaming console was to watch streaming video. We're not quite sure about that one, as it seems like a fairly expensive way to catch up on your Netflix shows with a wee bit of casual gaming on the side.

"We would have thought that you can basically watch video on any device, but it really appears that the tipping point is whether they're actually streaming content to their televisions," said John Fetto, Experian Marketing Services senior marketing manager, in an interview with Business Insider. "Having access to on-demand video when they want it without sacrificing screen size seems to be the real thing that makes a difference for them."

This all said, will more users turning to streaming services actually put a dent in the revenues pulled in by the television networks and cable operators? Unlikely for now, but possibly for the future:

"The young millennials who are just getting started on their own may never pay for television," Fetto said, as reported by The Huffington Post. "Pay TV is definitely declining."

But what isn't? Cable operators' broadband services. And Comcast might actually be OK with a drop in TV subscriptions so long as it can make up the difference when granting its users access to the pipes that feed Netflix, Hulu, and the lot.

David Murphy got his first real taste of technology journalism when he arrived at PC Magazine as an intern in 2005. A three-month gig turned to six months, six months turned to occasional freelance assignments, and he has since rejoined his tech-loving, mostly New York-based friends as one of PCMag.com's news contributors.
His rise to (self-described) fame in the world of tech journalism began during his stint as an associate editor at Maximum PC, where his love of cardboard-based PC construction and meetings put him in...
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